Toronto, June 12, 2014 -- Moody's Investors Service has today assigned a provisional (P)Aaa rating
to the Series CB15 covered bonds issued by Royal Bank of Canada under
the terms of its Global Covered Bond Programme. The series CB15
covered bonds are expected to be denominated in Euro, mature in
five years and have a fixed interest rate.

Issuer: Royal Bank of Canada

Series CB15, Assigned (P)Aaa

RATINGS RATIONALE

A covered bond benefits from (1) the issuer's promise to pay interest
and principal on the bonds; and (2) following a covered bond (CB)
anchor event, the economic benefit of a collateral pool (the cover
pool). The ratings therefore reflect the following factors:

(1) The credit strength of Royal Bank of Canada (RBC, deposits rating
of Aa3 negative; bank financial strength rating C+/adjusted
baseline credit assessment a2 negative, short-term deposit
rating of P-1). The covered bonds are obligations of RBC
and are also backed by a cover pool consisting of Canadian residential
mortgage loans that conform to the eligibility criteria specified in Canada's
covered bond legislation and the Canadian Registered Covered Bond Programs
Guide (the Guide).

(2) Following a CB anchor event the value of the cover pool. The
stressed level of losses on the cover pool assets following a CB anchor
event (cover pool losses) for this transaction is 13.79%.

Moody's uses the CB anchor to determine the probability that the issuer
will cease to make payments under the covered bonds. The CB anchor
for this programme is the deposits rating + 0 notches. Moody's
considered the following factors in its analysis of the cover pool's
value:

a) The credit quality of the assets backing the covered bonds.
The mortgages in the cover pool are high quality, conventional first
lien Canadian residential mortgages originated by RBC. The collateral
score for the cover pool is 8%. All of the loans have an
original LTV of 80% or lower, and no loans are authorized
to draw more than 80% of the property value. The current
weighted average LTV, based on the amount that the borrowers are
authorized to draw is 69%.

b) The program is subject to Canada's covered bond law. The law
provides, among other things, protection of the cover pool
against claims by creditors of the issuer and regulatory oversight by
the Canada Mortgage and Housing Corporation (CMHC).

c) The exposure to market risk, which is 8.36% for
this cover pool.

d) The over-collateralisation (OC) in the cover pool is about 41%,
of which RBC provides 7.5% on a "committed"
basis (see Key Rating Assumptions/Factors, below), corresponding
to an asset percentage of 93%.

e) Swaps to mitigate interest rate and currency mismatches; and

f) A twelve-month extension period for soft bullet covered bonds.

The provisional rating that Moody's has assigned addresses the expected
loss posed to investors. Moody's ratings address only the credit
risks associated with the transaction. Moody's did not address
other non-credit risks, but these may have a significant
effect on yield to investors.

EXPECTED LOSS: Moody's uses its Covered Bond Model (COBOL)
to determine a rating based on the expected loss on the bond. COBOL
determines expected loss as (1) a function of the probability that the
issuer will cease making payments under the covered bonds (a CB anchor
event); and (2) the stressed losses on the cover pool assets following
a CB anchor event.

The cover pool losses for RBC's covered bonds are 13.79%.
This is an estimate of the losses Moody's currently models following a
CB anchor event. Moody's splits cover pool losses between
market risk of 8.43% and collateral risk of 5.36%.
Market risk measures losses stemming from refinancing risk and risks related
to interest-rate and currency mismatches (these losses may also
include certain legal risks). Collateral risk measures losses resulting
directly from cover pool assets' credit quality. Moody's
derives collateral risk from the collateral score, which for this
programme is currently 8%. In addition, we have not
received information relating to the deposit account balances held by
cover pool borrowers at RBC, which would quantify the degree of
potential set-off risk. However, based on the fact
that the vast majority of loans in the cover pool contain set-off
waivers and our experience with pools of comparable collateral,
we believe the set-off risk is not material. Set-off
risk is the risk that following an issuer default, a borrower would
set-off amounts he owes on his mortgage loan against amounts in
his bank accounts held by the issuer exceeding the Canada Deposit Insurance
Corporation CAD100,000 limit.

TPI FRAMEWORK: Moody's assigns a TPI, which indicates the
likelihood that covered bonds continue to receive timely payments following
a CB anchor event. The TPI framework limits the covered bond rating
to a certain number of notches above the CB anchor. The TPI assigned
to this transaction is Probable.

FACTORS THAT WOULD LEAD TO A DOWNGRADE OF THE RATING:

An issuer downgrade to A1 or below would likely cause a downgrade of the
covered bonds unless the issuer chose to commit more overcollateralization
by contractually lowering the maximum asset percentage. In order
to change the maximum asset percentage the issuer may have to amend the
transaction documents. Moody's views the level of committed overcollateralization
consistent with the contractual maximum asset percentage, which
is currently 93%, and not by the fluctuating asset percentage
stated by the issuer in its investor reports.

STRESS SCENARIOS:

The CB anchor is the main determinant of a covered bond rating's robustness.
The TPI Leeway measures the number of notches by which Moody's might lower
the CB anchor before the rating agency downgrades the covered bonds because
of TPI framework constraints.

Based on the current TPI of "Probable", the TPI Leeway for RBC's
covered bonds is three notches. This implies that Moody's might
downgrade the covered bonds because of a TPI cap, if it lowers RBC's
CB anchor, all other variables being equal.

A multiple-notch downgrade of the covered bonds might occur in
certain limited circumstances, such as (1) a sovereign downgrade
negatively affecting both the CB anchor and the TPI; (2) a multiple-notch
lowering of the CB anchor; or (3) a material reduction of the value
of the cover pool.

RATING METHODOLOGY

The principal methodology used in this rating was "Moody's Approach to
Rating Covered Bonds" published in March 2014. Please see the Credit
Policy page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

For further specification of Moody's key rating assumptions and
sensitivity analysis, see the sections Methodology Assumptions and
Sensitivity to Assumptions of the disclosure form.

Moody's describes the stress scenarios it has considered for this
rating action in the section "Ratings Rationale" of this press
release.

For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
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For any affected securities or rated entities receiving direct credit
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